Gov. Jerry Brown said this morning that he's leaning against Internet retailer Amazon.com's proposal to put off enforcing a new law that taxes online purchases in exchange for the company launching several California distribution centers that would create several thousand new jobs.
"I'm concerned about anything that will reduce revenue going forward because we have a very uncertain economy," the governor said shortly after speaking at an awards ceremony at Sacramento's Radisson Hotel honoring California Department of Corrections and Rehabilitation employees. "Look, we need more revenues unless we're going keep curbing schools, courts, corrections."
Amazon has reportedly offered to open six new distribution centers in California that would create an estimated 7,000 jobs. In return, Amazon wants a reprieve from a bill that Brown signed in June until sometime in 2014. The new law requires online retailers immediately collect sales taxes from California customers.
The state budget assumes the new online tax will bring in roughly $200 million annually.
Amazon has poured more than $5 million into a state initiative drive to overturn the new law. State lawmakers responded with another bill that would make the tax measure impervious to a ballot-box challenge.